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GODFREY PHILLIPS
-INDIA LIMITED-
SCHEDULE 16 - Notes to the accounts (contd.)
vi) Income-tax
Provision for income-tax is based on the assessable profits computed in accordance with the provisions
of the Income-tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the
differences between taxable income and accounting income that originate in one period and are capable
of reversal in one or more subsequent periods.
vii) Proposed dividends
Dividends proposed by the directors as appropriation of profits are provided for in the books of account,
pending approval of shareholders at the annual general meeting.
vili) Research and development expenditure
Research and development expenditure is charged to revenue under the natural heads of account in the
year in which it is incurred.
ix) Foreign currency transactions
fransactions in to reign currency are recorded at the exchange rates prevailing at the time of transactions.
Gains losses on settlement of the transactions are taken to the profit and loss account The monetary
items are translated at the year end rates and the gains/ losses are taken to the profit and loss account
The difference between the forward rate and the exchange rate at the date of the forward contract
transaction is recognised as income or expense over the life of the contract in the profit and loss account.
The exchange difference on such contracts ie. difference between the exchange rate at the reporting /
settlement date and the exchange rate on the date of inception of the contract the last reporting date, is
recognised as income or expense for the period
Rupees in lacs
For the year For the year
ended
ended
31.3.2010
31.3.2009
2. REMUNERATION OF DIRECTORS
a) Included in Schedule 15 are:
Salaries*
186.55
126.18
Monetary value of benefits
43.22
43.05
Commission
115.27
90.00
Sitting fees
9.60
11.20
354.64
270.43
*excludes incremental liability for gratuity and compensated
absences which are actuarially determined on an overall basis.
b) Computation of directors' commission and net profit in
accordance with Section 198 of the Companies Act, 1956
Profit before taxation
16739.57
16590.64
Add/ (less):
Directors' remuneration
354.64
270.43
Profit on redemption sale of other long term investments
(2230.04)
(2653.41)
Bad debts and advances written off against provision
(13.75)
Provision for doubtful debts and advances written back
(0.20)
14850.22
14207.66
Maximum commission payable to the three
working Directors @ 4% of the above profit
594.00
568.31
Restricted to
115.27
90.00
43
Source: https://www.industrydocuments.ucsf.edu/docs/jybx0223

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